meed-logo

line1 line2 line3
SIGN IN / REGISTER

Delivering Saudi Arabia’s global logistics goals

12 July 2023

 

Saudi Arabia’s Vision 2030 has high aspirations for the logistics sector. Strategically located between the continents of Europe, Asia and Africa, the kingdom has set bold targets as it aims to become a global logistics hub handling 4.5 million tonnes of air cargo and 330 million air passengers a year by the end of the decade.

To deliver these goals, Riyadh recognised the need for a new generation of national champions to lead the sector’s development. One of those companies is Saudi Logistics Services (SAL), formed in December 2019.

“While it appears that we have only four years of experience, we were part of Saudi Arabian Airlines Corporation (SACC), carrying a history of more than 77 years, since 1945 when the Saudi airline was established,” says SAL’s managing director and CEO Faisal Albedah (pictured) in an interview with MEED.

“The shareholders decided to carve out the cargo handling from SACC and create SAL,” Albedah says, adding that the move was designed to “focus more on cargo handling, to grow it, increase efficiency and give best-in-class services to our clients”.

Multiple modes

SAL’s name underpins its ambition to be more than just an air cargo handler.

“SAL stands for sea, air and land. It’s about the connectivity between all the modes of shipment. Our vision is to be the logistic champion for a globally connected Saudi Arabia,” he says.

This, he explains, will be achieved by “building the right organisation, resources and capabilities, and also with partnerships across the value chain”.

SAL already has significant operations in the kingdom. “We operate in 18 airports across Saudi Arabia and have our own terminals everywhere.”

He underlines the company’s strategic role in aiding Vision 2030 by elaborating, “We increase our capacity and efficiency by utilising digitisation and automation. We allocated capital expenditure of SR1.5bn [$400m] to expand our capacity and support Vision 2030.”

We are working to localise logistics expertise within Saudi Arabia. We have 1,000 employees, 97.2 per cent of whom are Saudi nationals
Faisal Albedah, SAL

Solid growth

SAL is growing strongly. Its performance in the first quarter of 2023 shows expansion across various metrics. 

Transit truck handling was the star performer, with a 161.3 per cent year-on-year increase in the number of trucks handled.

Dammam stood out with an impressive 358.2 per cent growth, underlining its prominence in transit operations. Riyadh experienced a 28 per cent year-on-year increase, while Jeddah showed a decrease of 13 per cent.

Passenger aircraft handling numbers grew by 18 per cent on a year-on-year basis, with Jeddah leading the demand with 39.1 per cent growth. 

For cargo aircraft handling, SAL achieved a substantial 18.4 per cent year-on-year increase, led by Dammam with 64.4 per cent growth. However, the rise in cargo handling was not universal. Jeddah registered a 6.8 per cent drop in cargo plane handling.

When comparing the weight of the total volumes of shipments, SAL achieved a commendable 13.1 per cent year-on-year increase. Dammam, once again, emerged as the leader with 40.8 per cent year-on-year growth.

Jeddah also witnessed positive growth of 15.9 per cent, while Riyadh experienced an increase of 5.5 per cent. Medina showed a slight decrease of 1.5 per cent. 

Going forward, a core aspect of SAL’s growth strategy involves investing in human capital.

“We have signed an agreement with the Saudi Logistic Academy, sending 250 of our staff to get an education in logistics solutions,” says Albedah.

Giving insights into SAL’s customer relations and handling capacity, Albedah shares that “we handle nearly 380 daily flights” and emphasises the company's approach to problem-solving.

“Clients do not just want services; they need solutions. We sit with our clients to understand their challenges and work out a long-term solution,” he said, noting that the Covid-19 pandemic underscored the need for resilient, long-term solutions.

Focusing on SAL’s efforts in localisation, Albedah proudly announces that, “We are working to localise logistics expertise within Saudi Arabia. We have 1,000 employees, 97.2 per cent of whom are Saudi nationals.”

Online retail

One sector that has been identified as a fast-growing opportunity for SAL is online retail.

“E-commerce in the region is expected to grow at a rate of 16 per cent between 2020 and 2030. SAL supports the sector with our cargo handling business, which has fully dedicated terminals to support all the courier companies. We also plan to invest in fulfilment services for e-commerce,” says Albedah.

Another initiative for the future is SAL’s plan to diversify into passenger handling. “We have obtained our licence for ground services for passengers from the General Authority of Civil Aviation,” he says. 

In January, SAL signed a memorandum of understanding with ground-handling company Menzies Aviation to develop passenger handling services for low-cost carriers at Saudi Arabia’s airports.

Albedah says collaborating with a multinational player will “help us get into passenger handling. We want to play a role in achieving the country’s vision to reach 330 million passengers a year by 2030”.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10997970/main.gif
Colin Foreman

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Egypt tenders 500MW solar IPP

    19 February 2026

    Register for MEED’s 14-day trial access 

    Egyptian Electricity Transmission Company (EETC) has issued a request for qualifications for a 500MW solar photovoltaic (PV) independent power producer project in Egypt’s West of Nile area.

    The bid submission deadline is 11 May.

    The project is being supported by the European Bank for Reconstruction & Development and will be developed under a build-own-operate model.

    Developers will be responsible for designing, financing, constructing, owning and operating the plant, with EETC acting as the offtaker for generated electricity.

    US/India-based Synergy Consulting is acting as lead, financial and commercial advisor for this transaction.

    The project forms part of Egypt’s strategy to strengthen long-term electricity supply and increase renewable generation capacity.

    Egypt is targeting 42% renewable energy in its power mix by 2030. The country aims to raise this share to 65% by 2040.

    EETC previously had plans to build a 200MW solar plant in a west Nile area but cancelled the tender for the project in 2020.

    Egypt's power sector had its strongest year in over a decade last year, accounting for $4.2bn of total contract awards.

    Despite dipping from the previous year, solar accounted for about $1bn of total awards. 

    In November, a consortium of local firms Hassan Allam Utilities and Infinity Power won contracts to develop two solar PV projects with a combined capacity of 1,200MW, supported by 720 megawatt-hours (MWh) of battery storage.

    The UAE’s Amea Power and Japan’s Kyuden International Corporation also recently reached financial close on a $700m project comprising a 1,000MW solar plant and 600MWh battery system in Aswan.

    The scheme is backed by a $570m debt package led by the International Finance Corporation and is expected to become Africa’s largest single-asset solar and storage facility when it enters operation later this year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15701778/main.jpg
    Mark Dowdall
  • Local contractor wins $143m Jeddah sewage contracts

    19 February 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s National Water Company (NWC) has awarded two sewage network contracts worth a combined SR536.3m ($143m) to local contractor Civil Works Company.

    The projects will be implemented over 32 months from site handover and will serve northern Jeddah districts.

    The first contract, valued at SR278.5m ($74.3m), covers incomplete main lines and secondary sewage networks serving parts of the Al-Bashair, Al-Asala and Al-Falah neighbourhoods.

    The scope includes pipelines ranging from 200mm to 800mm in diameter with a total length of about 54.8 kilometres (km).

    The package also includes sewage tunnels with diameters ranging from 600mm to 1,800mm and a total length of approximately 6.5km. Works will also serve the Taybah, Abhar Al-Shamaliyah and Al-Hamdaniyah districts.

    The second contract is valued at SR257.8m ($68.8m). It covers the implementation of main lines and sub-networks to serve part of the Al-Hamdaniya neighbourhood.

    The works include pipelines ranging from 200mm to 1,500mm in diameter with a total length of about 78.5km. The scope also includes horizontal drilling works for sewage tunnels with diameters from 1,200mm to 1,400mm and a total length of approximately 205 metres.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15699620/main.jpg
    Mark Dowdall
  • Saudi Arabia prequalifies firms for gas transmission grids

    19 February 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia's Energy Ministry has prequalified companies to develop natural gas distribution networks in five industrial cities in the kingdom on a build-own-operate (BOO) basis.

    The industrial zones earmarked are Al-Kharj Industrial City; Sudair City for Industry and Business; and the First, Second and Third Industrial Cities in Jeddah, the Energy Ministry said in a statement.

    The contractors prequalified to bid for the natural gas transmission grids BOO scheme include eight standalone firms and seven consortiums:

    • East Gas (Egypt)
    • Natural Gas Distribution Company (Saudi Arabia)
    • Egyptian Kuwaiti Advanced Operation and Maintenance (Saudi Arabia)
    • Modern Gas (Egypt)
    • Saab Energy Solutions (Saudi Arabia)
    • Sergas Contracting (Saudi Arabia)
    • Bharat Petroleum Corporation (India)
    • UniGas Arabia (Saudi Arabia)
    • Best Gas Carrier / Khazeen / Mubadra (Saudi Arabia)
    • Al Sharif Contracting (Saudi Arabia) / Anton Oilfield Services Group (China) China Oil and Gas Group
    • Hulul (owned by Saudi Arabia’s National Gas and Industrialization Company) /Al-Fanar Gas Group (UAE)
    • Indraprastha Gas (India) / Masah Contracting (Saudi Arabia)
    • Expertise Contracting / PGL Pipelines (UK)
    • National Gas Company (Egypt) / Egypt Gas (Egypt)
    • Taqa Arabia (Egypt) / Taqa Group (UAE)

    The Energy Ministry has set a deadline of 23 April for these prequalified contractors to submit technical bids.

    The ministry added in its statement that it has identified a total of 36 industrial cities in Saudi Arabia for gas infrastructure development.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15699582/main0334.png
    Indrajit Sen
  • Consultants bid for Abu Dhabi airport delivery partner role

    19 February 2026

     

    Abu Dhabi Airports Company (Adac) received bids from major international firms on 19 January for a contract covering the delivery partner role for the upcoming packages at Zayed International airport (AUH).

    The project is part of the AUH satellite terminal programme, estimated at AED10bn ($2.7bn).

    MEED understands that the following firms have submitted bids:

    • Aecom (US)
    • AtkinsRealis/Egis/Mace (Canada/France/UK)
    • Bechtel (US)
    • Hill International (US)
    • Jacobs / Surbana Jurong (US/Singapore)
    • Parsons Corporation / Arup  (US/UK)

    The plan includes a new satellite concourse east of Terminal A, linked by an underground tunnel housing both an automated people mover and a baggage handling system.

    It also includes apron stands, taxi lanes and taxiways, East Midfield landside access and utilities, additional bus gates and the reconfiguration of the North and South aprons and Apron 6.

    The latest tendering activity follows the start of construction works on the East Midfield cargo terminal located at AUH, as MEED reported in December 2024.

    Local firm Raq Contracting is undertaking the construction works on this project. 

    The terminal will cover an area of 90,000 square metres and will have the capacity to handle about 1.5 million tonnes of cargo annually.

    The project is part of a broader plan to enhance the new airport's profile.

    Abu Dhabi opened a new passenger terminal in November 2023 as part of the airport’s plan to increase its passenger traffic in line with the UAE’s wider growth plans, along with projects such as the rail network being built by Etihad Rail.

    In May 2024, MEED reported that AUH's new Terminal A could connect to the Etihad Rail network in the future, as part of its growth and interconnectivity plans. 

    Plans are in progress to link the new terminal at AUH to the UAE’s growing rail network, according to the CEO of Adac.

    Speaking to UK analytic firm GlobalData's Airport Technology during a tour of the new Terminal A at AUH, CEO Elena Sorlini said that Abu Dhabi Aviation is planning to improve the transport links to the site. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15698728/main.png
    Yasir Iqbal
  • Qatari firm wins Damascus airport MEP works

    19 February 2026

    Qatari firm Elegancia MEP, which is owned by local investment firm Estithmar Holding, has won a contract to undertake the mechanical, electrical and plumbing (MEP) and extra-low-voltage (ELV) systems works for the Damascus International airport Terminal 2 project.

    In a statement, Elegancia MEP said that its scope covers the execution of MEP and ELV systems works to support terminal operations, passenger facilities, safety systems and overall operational efficiency.

    The MEP works for the airport project include electrical installations; heating, ventilation and air conditioning (HVAC) systems; safety and security systems; firefighting systems; surveillance and monitoring systems; control systems; and plumbing works.

    The contract award follows the signing of the final concession contracts in November last year by Qatar’s UCC-led consortium to redevelop Damascus airport, formalising the prior memorandum of understanding (MoU) inked in August 2025 with Syria’s General Authority of Civil Aviation.

    The contract will see the consortium redevelop and expand the airport in several phases under a build-operate-transfer framework, with a view to raising total capacity to 31 million passengers annually upon the completion of all phases.

    The agreement is valued at an estimated $4bn and includes plans for the overhaul of all existing terminals, the construction of other passenger facilities and 500 kilometres of access roads, as well as the development of a commercial complex centred around a five-star hotel.

    The signing of the final concession contracts followed UCC Holding’s provisional signing in October last year of five consultancy and design agreements for planned work on the project.

    The earlier MoU designated UCC Holding as the primary developer through its investment arm UCC Concessions Investment, alongside three Turkish partners – Cengiz, Kalyon and TAV – and the US-based Assets Investments USA.

    US-based firm Synergy Consulting is the financial adviser for the consortium.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15698666/main.png
    Yasir Iqbal